Home / Knowledge / News / Textiles / Smart Cities to make India attractive for FDI – IHS
Smart Cities to make India attractive for FDI – IHS
12
Aug '14
An announcement, by the Indian government to create 100 Smart Cities has the potential to create a new competitive landscape for the subcontinent that will be much more attractive for foreign direct investments by global multinationals, says a latest analysis from US-based and NYSE-listed IHS, a global provider of information, insight and analytics in critical areas.

In response to India’s population projected to increase by 200 million people over the next 15 years, in turn placing tremendous pressure on the country’s urban infrastructure, the Indian government headed by Narendra Modi, had announced a programme in July to build 100 Smart Cities.

This has a potential to transform India’s global competitiveness within 10 years and boost the country’s long-term potential economic growth rate, the analysis from IHS reveals.

IHS Asia-Pacific Chief Economist Rajiv Biswas noted that the total investment associated with the development of 100 smart cities in India could be far in excess of US$1 trillion with a significant share of this investment likely to be from foreign government and private sector inflows in an Asia research paper titled - Can Modi’s ‘Smart Cities Strategy’ Drive India’s Economic Rebound?.

Biswas says, “The development of India smart cities with modern, highly efficient infrastructure for electricity, transport and IT, will create a new competitive landscape for the subcontinent that will be much more attractive for foreign direct investments by global multinationals.

“The potential economic impact effects from the development of India’s smart cities development will act as a significant catalyst for economic growth through a number of drivers, including increased FDI inflows, accelerated REITs (Real Estate Investment Trusts) development, increased competitiveness, and job creation.”

Biswas adds, “Modi’s track record of infrastructure development while he served as Chief Minister of Gujarat demonstrates his commitment to implementing such infrastructure projects and attracting foreign investment inflows”.

“For example, one Smart City planned during that time that is already under construction is Gujarat International Finance Tec-City (GIFT) which is designed to be an international financial services and technology hub”, Biswas notes.

The estimated total investment for the Delhi Mumbai Industrial Corridor (DIMC) project is US $90 billion and the GIFT smart city $10 billion, together amount to $100 billion, so the total investment associated with the development of 100 Smart Cities in India could be far in excess of US$1 trillion, the paper observes.

A significant share of this investment is likely to be from foreign government and private sector investment inflows.

“If his BJP-led government can successfully roll out the smart cites programme across India, it could significantly improve India’s potential growth rate, boost the country’s international competitiveness, and generate millions of new jobs over the next decade,” Biswas says.

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search